Jordan earns an annual salary of $47,400. If a lender uses 33% of monthly gross income...

Jordan earns an annual salary of $47,400. If a lender uses 33% of monthly gross income as a guideline for the maximum PITI (principal, interest, taxes, and insurance), what is the maximum amount that Jordan can pay for PITI each month?

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Expert Solution

Maximum mortgage amount per month for PITI = Annual salary x Rate /12 months

Maximum mortgage amount per month for PITI = 47400 x 33% /12

Maximum mortgage amount per month for PITI = $1,303.50

jeff jeffy answered 1 year ago

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